Glenn Blogs

  UK Inflation and Recession: What's Up? The Surge of Inflation: A Post-Pandemic Reality Inflation Defined: A sustained increase in prices of goods and services, beneficial at 2-3% but harmful at double digits like the UK's 11% post-pandemic. Root Causes: Increased food and energy bills, driven by the pandemic's aftermath and the Russia-Ukraine war. The war's impact on oil prices and food supply chains led to higher costs for essentials like fertilizers and animal feed (cost-push inflation). Consequence: A supply-demand mismatch, pushing prices upward and fueling inflation. : Interest Rates: The Double-Edged Sword Strategy: To combat inflation, the UK raised interest rates from around .3 to 5.25%, aiming to curb the rise in living costs by reducing spending power.    Impact on Households: Higher interest rates mean increased mortgage repayments, reducing ability to spend as a lot money is spent on mortgage repayments.   (ex.  To calculate how a change in...

  Moody's Investors Service Standard & Poor's (S&P) Fitch Ratings DBRS Morningstar Kroll Bond Rating Agency What are they? We have all heard about government bonds right? How safe are they to invest. Well, it is a known and head fact that US government bonds are the safest to invest in. This leads to them having a high credit rating issued by credit rating companies above. The top 5 are those that are listed above. So why are these companies so significant. The rating these companies give to the bonds directly impacts investor confidence regarding the bond. Lower the confidence higher the interest rate to be paid on the bond Let's take an example regarding the significance of bond rating Country A Country B Triple A rating bond Triple B rating bond yield rate = 3 percent yield = 6 percent 10 million dollar...